Goods and Services Purchased from International Sources Are

question 2

Multiple Choice

Goods and services purchased from international sources are

• A)Exports.
• B)Imports.
• C)Net exports.
• D)Net imports.

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual units of output.

Capacity

The maximum level of output that a company can sustain to make a product or provide a service, influenced by available resources and constraints.

Machine-Hours

The total hours a machine is operated within a given period, often used to allocate manufacturing overhead.

Unused Capacity

The difference between a company's actual production and its maximum potential production if all resources were fully utilized.